Рђsian Bank to start project in Azerbaijan, the largest in CIS, on renewable sources of electrical power
After receiving authorization signing of the grant agreement on the project for introducing alternative sources of energy in Azerbaijan with the Asian Bank of Development (ABD) will take place soon, the government told Trend. The authorization for signing the agreement is supposed to be charged with the Minister of Industry and Energy Natig Aliyev and the Minister of Economic Development Heydar Babayev.
For preparation of the first energy project in Azerbaijan ABD will grant $900,000. The tender procedure for selecting consultant is taking place and the short-list has been identified. The projects major task is to supply electrical power to the countrys regions. The essence of it is providing them with the alternative sources of energy by using the windmills, mini-hydraulic and solar energy. It is needed for maintenance of the agricultural activities in the regions. For the project implementation ADB plans to allocate the loan of $40 million.
It is notable that the bank revised the conditions or the loan allocating. If earlier from the total amount of the credit $15 million was to be allocated on preferential conditions, now ABD displays readiness to allocate $25 million under the same conditions. The remaining part will be given on usual conditions and the Azerbaijan government is to accelerate the preparation to the project to launch its implementation this year, although no discussions have been held in the government in this respect. It will be the largest project on renewable sources of electrical power in CIS.
The government attaches large attention to this field. As Natig Aliyev noted at the recent working group energy meeting of the Black Sea Economic Cooperation Organization (BSECO) member states, renewable sources of energy should be developed at small power stations and windmills.
Azerbaijan joined last year the ABD technical assistance regional project Renewable energy, energy efficiency and researching of greenhouse gases reducing (PREGA). The National report on the renewable energy sources is underway in Azerbaijan jointly with the Ministry of Industry and Energy.
PREGA, funded by the government of Netherlands and managed by РђDB is designed for $4,5 million and is valid for the 12 bank members (Central Asian countries, China and Mongolia).